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Clear my confusion

Queries 752 views 5 replies

dear friends,

1) every person who has provided a taxable service of value exceeding 950000/- in the preceeding financial year is required to register with central exise.

2) when a person commences bisiness of providing a taxable service he is required to register himself with in 30 days of such commencement.

my doubt is according to 1st line to get registerd value of services in the preceeding year should exceed 950000/-. so if a person who commences a  business of providing taxable services , how he need to get registered? bcoz during the previous year his value of services nill as it is newly establishing, pls clear my doubt any body. thanks in advance.

Replies (5)

1) its 9.0 lacs not 9.5 lacs

2) taxable means 10 Lacs ...............so upto 10 lacs he is non taxable

but a person starting business newly  his value of services will be nill in the preceding year . so thereis no 950000/- sale value  so why he need to get registered with in 30 days ?

Originally posted by : sanju

but a person starting business newly  his value of services will be nill in the preceding year . so thereis no 950000/- sale value  so why he need to get registered with in 30 days ?

1) preceeding year NIL service rendered ( new concern)

2) 9.5L sale value ....( sale is not part of service tax) he has to obtain service tax registration within 30 days of exceeding 9.0 Lacs of service provided / billed / payment received ( whichever comes earlier) and start to pay service tax on completion of 10 lacs.service tax is payable above 10 lacs only.

9.5 Lacs is a part of the sale not servise tax

secondly, this is new concern it has requirement of service tax registration no. when its provide the servises above 9.00 Lacs (with in 30 days) if services turnover is exceed of Rs 10 lacs the firstly it liable to pay the service tax only Exceed amount not whole amount

thereafter it will be liable to pay service tax from initiation.

Dear Sir,

Two seperate entities duly registered under company act, are being controlled by common directors. The administrative office of both the entities are in one place. The expenses pertaining to office such as office rent, telephone, maintenance etc. are booked in the books of one entity which are subsequently transferred to second entity on prorata basis through debit note. Whether such sharing of expenses shall be covered under associate transaction and shall be liable for service tax. The notification no. 19/2008 dated 10th May, 2008 may also be consider for deciding the facts.

Please advise.

 

Mudit Saxena  


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